Economics is a subject that is studied by many but understood by few. There is a direct relationship between a nation’s economy and the fiscal policy of that region.
When the government of a region regulates the level of spending of money and the taxes of that region, it is generally monitored via the Fiscal policy. This also remains one of the most important topics in economics.
Our economics assignment help experts, at My Assignment Services, have assisted several students in understanding this complex yet vital concept with the help of relevant reference assignment solutions.
In this blog, we will throw some light on the economics assignment sample on discretionary fiscal policy and try to figure out the basic approach which our experts use for solving assessments on it.
Expansionary V/S Contractionary Fiscal Policy
There are two types of Fiscal policy, also known as the discretionary fiscal policy that need to be understood, to work upon a discretionary fiscal policy assessment answer. We will explain how experts make use of the AD-AS graphs to elucidate these two types of fiscal policies in the assignments.
Expansionary fiscal policy
It is when the tax imposed on objects reduce or the money spent by the government increase. When the government spends more, it results in an increase in the employment opportunities for people. Naturally, the economic growth of a nation increases in this case.
However, there is also one downside of expansionary fiscal policy, which is budget deficits come into the scene.
Contractionary fiscal policy
This is the condition wherein, the money spent by the government is cut down which leads to an increase in the taxes. Naturally, there is a reduction in job opportunities. Contractionary fiscal policy, thus, slows down the economic growth of a nation.
Now, our economics assignment writers will talk about the assignments on discretionary fiscal policy and with the help of a recently solved reference assignment solution, explain how to approach these assignments.
Assessment Questions Involved in this Economics Assignment Example
There are different questions in this economics assignment sample that are based on different concepts. All the economic concepts which are used in this assignment are complex and need a concrete knowledge of the basics.
At My Assignment Services, we host a panel of professionals who are graduates from a variety of reputed institutions all over the globe. Naturally, dealing with those concepts is an easy task for us.
So, let us discuss each of them in detail and talk about the concepts used in them.
For the discretionary fiscal policy assignment question that has come to our economics assignment help experts, we use the AD and AS curves as well as the components of it. There are 4 questions in this and a step-by-step manner, we will now work upon each of these.
In the first question, there is a statement given. Based on the understanding of the discretionary fiscal policy in the context of that specific region where the case has occurred, students are expected to put forth their views upon it and justify the same with the help of some credible source of information, either from their course or from any external platform.
For answering this, our economics assignment writers research about the given sentence and then state their viewpoint. Taking reference from the article by the authors, they bring in some instances on fiscal policy that back up their answer. With the help of these incidences, our experts can add credibility to their work.
For question 2, there has been a portrayal of the comparison between current output (real GDP) and potential GDP. Students have to suggest different means by which this data can reach up to the level of the potential GDP.
In a way, you have to suggest your interpretation of both the GDPs.
To answer this, our economics assignment help experts consider a lot of different economic factors such as the increased activities of trade, increased expenditure, high employment, demand etc. After studying all of these factors, we get to see an inflationary gap in the economy.
With the help of this, it becomes clear that if the government uses the Contractionary fiscal policy in this situation, it will be beneficial.
The discretionary fiscal policy assessment question 3 asks students to depict the above situation with the help of an AD-AS diagram.
Here, we not only draw the graph but also explain the components that change here.
As you can see in the graph, there is a depiction of the Contractionary fiscal policy. Talking about the components, it is visible how to aggregate supply and aggregate demand intersect at the equilibrium.
When the government would use the Contractionary fiscal policy, the aggregate demand would reduce and the equilibrium would shift to potential GDP as shown in the graph below:
In this question, the concept of the fiscal multiplier is being used. However, there are several other concepts that our economics assignment help experts use here.
For instance, marginal propensity and consumer spending are co-related to depict the basic idea of the fiscal multiplier. In addition to this, there is also an explanation of the Fiscal multiplier theory to bring forth the concept of MPC.
Further, this brings the conclusion to be an increase in demand, which ultimately leads to a decrease in supply. This points towards the growth of the national economy as job opportunities would increase.
So, these are the 4 questions that our economics assignment help experts have covered in this question. However, the solutions here are incomplete and brief. In case, you require the complete solution of this question file or similar kind of assignments, then you just need to submit all the requirements of the assignment to our experts and we will get back to you shortly with the complete reference assignment solution for the same.
Speak to Our Experts Today If You Need Help With a Similar Economics Assignment
In this blog, we have helped you understand all these four questions briefly. They not only talk about the discretionary fiscal policies but also cover a large number of topics that are crucial for any economics assignment. For more than a decade now, our economics assignment help experts have guided students on these with the help of our reference assignment solutions.
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